Scorpio Tankers Update Finance & Newbuilding News

Scorpio Tankers inform of a new $150 million stock buyback program; initial purchasers' exercise of their option to purchase additional $60 million in convertible senior notes due 2019, and newbuilding vessel deliveries. Main points follow:

New $150 Million Stock Buyback Program
On June 27, 2014, the Board of Directors approved a new stock buyback program with authorization to purchase up to $150 million of shares of the Company's common stock. This program replaces the Company's stock buyback program that was previously announced in April 2014, which is being terminated effective immediately. The Company expects to repurchase these shares in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the program to repurchase any shares.

The Company says it has 178,534,162 shares outstanding as of June 30, 2014.

Full Exercise of the Option to Purchase an Additional $60 million in Convertible Senior Notes due 2019
The initial purchasers in the Company's previously announced offering of $300 million of the Notes fully exercised their option to purchase an additional $60 million in the Notes for an aggregate of $360 million in the Notes. The Company intends to use the net proceeds of the offering of the Notes for general corporate purposes including additional potential repurchases of its common stock.

Newbuilding Vessel Deliveries
The Company also announced that it has recently taken delivery of three product tankers under its Newbuilding Program.
 

• STI Brixton, a Handymax Ice Class 1A product tanker was delivered from Hyundai Mipo Dockyard of South Korea on June 27, 2014. Upon delivery, this vessel began a time charter for up to 120 days at approximately $15,000 per day.

• STI Venere and STI Virtus, MR product tankers, were delivered on June 30, 2014 from Hyundai Mipo Dockyard of South Korea and SPP Shipyard of South Korea, respectively. Upon delivery, these vessels began time charters for up to 120 days at approximately $18,000 per day.


The Company has also made the anticipated drawdowns from its 2013 Credit Facility, KEXIM Credit Facility, and K-Sure Credit Facility to fund the above mentioned and previously announced vessel deliveries that occurred during the second quarter of 2014.

www.scorpiotankers.com